Skandia Int enhances DFM options

The international investment arm of Old Mutual Wealth will provide the option to select multiple external custodians, who can oversee certain parts of the portfolio according to their expertise, all within one offshore bond wrapper.

This means advisers can switch DFMs within the portfolio to maximise performance while avoiding income and capital gains tax liabilities.

The firm is also offering advisers the chance to select a combination of in-house and external custodians to hold assets within the wrapper, allowing them to manage some of the funds themselves while outsourcing much of the investment management.

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Phil Oxenham, head of proposition marketing at Skandia International, said: “Offering multi-custodian business can help customers more effectively manage their wealth by providing greater choice and flexibility. The ability to leave assets with an existing custodian and select multiple DFMs is an attractive option, and we are experiencing growing demand for this type of business.”

He added that the company was making “continual improvements” to its offshore bonds to reflect adviser feedback.

Keith Churchouse, director of Surrey-based Chapters Financial Planning, said: “In all the noise surrounding RDR, it has become clear the true benefactors will be DFMs, so it does not surprise me that a packaged provider is offering this facility to capture that side of the market and we shall only see more of it coming through in the future.”